Townnews-Sha Co., Ltd. (2481) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Starts Publishing Corp.

Townnews-Sha Co., Ltd.

Alphapolis Co., Ltd.

Printnet, Inc.

Bunkeido Co., Ltd.

SE Holdings & Incubations Co., Ltd.

Impress Holdings, Inc.

Success Holders, Inc.

Kadokawa Corp.

Shobunsha Holdings, Inc.

Seki Co., Ltd.

Why is Townnews-Sha Co., Ltd. ?

Company has very low debt and has enough cash to service the debt requirements

Poor long term growth as Net Sales has grown by an annual rate of 3.55% over the last 5 years

Flat results in Jun 25

NET PROFIT(Q) At JPY -0.28 MM has Fallen at -101.6%
ROCE(HY) Lowest at 7.85%
DEBT-EQUITY RATIO (HY) Highest at 0 %

With ROE of 7.96%, it has a very attractive valuation with a 0.76 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -12.40%, its profits have fallen by -12.1%

Below par performance in long term as well as near term

Along with generating -12.40% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Townnews-Sha Co., Ltd. should be less than 10%
Overall Portfolio exposure to Media & Entertainment should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Media & Entertainment)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Townnews-Sha Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Townnews-Sha Co., Ltd.

-13.47%

-0.46

25.06%

Japan Nikkei 225

28.54%

1.14

25.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.55%

EBIT Growth (5y)

10.53%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.42

Sales to Capital Employed (avg)

0.79

Tax Ratio

29.79%

Dividend Payout Ratio

28.37%

Pledged Shares

Institutional Holding

ROCE (avg)

17.00%

ROE (avg)

7.70%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.76

EV to EBIT

3.86

EV to EBITDA

3.49

EV to Capital Employed

0.59

EV to Sales

0.49

PEG Ratio

Dividend Yield

ROCE (Latest)

15.35%

ROE (Latest)

7.96%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

OBV

Mildly Bearish

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

4What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at JPY 13.95

RAW MATERIAL COST(Y)

Fallen by 0.27% (YoY

CASH AND EQV(HY)

Highest at JPY 4,410.07 MM

-10What is not working for the Company

NET PROFIT(Q)

At JPY -0.28 MM has Fallen at -101.6%

ROCE(HY)

Lowest at 7.85%

DEBT-EQUITY RATIO (HY)

Highest at 0 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 13.95%

PRE-TAX PROFIT(Q)

Lowest at JPY -11.16 MM

EPS(Q)

Lowest at JPY -0.05

Here's what is working for Townnews-Sha Co., Ltd.

Dividend per share

Highest at JPY 13.95 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Cash and Eqv

Highest at JPY 4,410.07 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by 0.27% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Townnews-Sha Co., Ltd.

Net Profit

At JPY -0.28 MM has Fallen at -101.6%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Pre-Tax Profit

Lowest at JPY -11.16 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY -0.28 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY -0.05

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Debt-Equity Ratio

Highest at 0 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Debtors Turnover Ratio

Lowest at 13.95%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio